Younger Canadians are increasingly turning to artificial intelligence for financial advice, driven by a desire for low-cost, anonymous guidance and a fear of being judged by professionals. However, experts warn that relying on unregulated AI tools carries significant risks, including poor investment decisions and personalized fraud.
Survey Highlights AI Usage Trends
According to a recent report by Money Mentors, a non-profit credit counselling agency based in Alberta, in partnership with Angus Reid, nearly half (47 per cent) of Canadians aged 18-34 sought online financial advice over the past year. Among Generation Z, 37 per cent used social media platforms like TikTok, Instagram, YouTube, or Reddit, while 22 per cent turned to AI tools such as ChatGPT, Claude, and Gemini. This represents the highest usage of these sources for financial guidance across all generations.
Overall, about one in three Canadians sought financial information online in the past year, with 15 per cent using AI tools and 16 per cent using social media. Stacy Yanchuk Oleksy, CEO of Money Mentors, noted that Canadians prefer to educate themselves first, as online sources are more accessible and relatable, especially social media.
Reasons for Turning to AI
The survey found that nearly three-quarters of younger Canadians who use online sources for financial information value quick access, while 46 per cent appreciate the relatability and ease of understanding. About 39 per cent prefer self-education before consulting a professional, 30 per cent value anonymity, and 27 per cent say they can get advice without feeling judged.
“When it comes to money, there’s a deep amount of shame associated with it, especially debt and credit issues,” Yanchuk Oleksy said. “You don’t get judged by ChatGPT, whereas perhaps you might feel judged by your banker.” She added that there is greater social acceptance among younger Canadians for using technology as a financial resource, especially when they are unsure if their situation warrants professional advice. “I think they’re turning to those sources because they’re low-barrier entry — they’re low cost or no cost.”
About 28 per cent of younger respondents said they don’t feel their situation is serious enough for professional advice, and 20 per cent cited cost as a deterrent. The top financial decisions using online information included savings (42 per cent), budgeting (42 per cent), and investment choices (41 per cent).
Risks and Concerns
However, Yanchuk Oleksy and regulatory groups have expressed concerns about the use of AI tools for financial advice. AI is described as “unregulated and uncontrolled,” posing risks ranging from poor investment decisions to personalized fraud. Canadians are advised to treat AI as a starting point, not a final decision maker, and to verify recommendations with trusted or regulated sources before taking action.
